Marketing Flashcards
Market
Refers to a business’ customers or consumers
Sales volume
Number of items sold
Market share
The proportion of total sales within a market that is controlled by a business
Segmentation
When customers within a market are divided into different groups
Extension strategies
the name given to the action a business takes when it identifies a product is close to entering the decline stage of the Product Lifecycle
Possibilities of extension strategies
. Reducing the price
. Advertising
. New packaging
. New features
price skimming
start with a high price and then reduced over time
What are the two types of market research
Primary and secondary
What is primary market research
. Original research that company’s did themselves
. Focus groups
. Surveys
What is secondary market research
. Existing data is used
. Uses research by marketing firms
. Government publications and internet is used
Pros amd cons of primary research
Pros: design quantitive and qualitive research tailored to your needs, may give you “trade secrets” for competitive edge.
Cons: time consuming, likely expensive, surveys often get dismissed
Pros and cons of secondary market research
Pros: quick and instant, cheaper to access, limited time and effort to find info
Cons: competitiors will have access to the same info, research may be too broad or out of date, could be inaccurate
Segmentation
When customers within a market are divided into different groups
Competitive pricing
a marketing strategy whereby businesses set prices based on their competitors’ prices
Loss leader
selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional products and services to those customers.
Cost plus pricing
involves working out the cost per unit of producing a product, before adding a percentage for the profit they are looking to make
Price skimming
pricing strategy in which businesses initially charge a high price for their product/service, before gradually reducing the price to attract a more price-sensitive market segment.
Product portfolio
A product portfolio is a collection of the various products or services that a company offers
